The Italian government is temporarily reducing the diesel tax – until August 6th, diesel will be 17 cents per liter cheaper.Image: Shutterstock
July 28, 2026, 12:27 p.mJuly 28, 2026, 12:27 p.m
The Italian government is reducing the tax for consumers on diesel until August 6th. As Finance Minister Giancarlo Giorgetti announced on Monday evening after a cabinet meeting, diesel will be cheaper by a total of 17 cents per liter. Gasoline and tobacco taxes remain unaffected by the measure. Giorgetti estimated the cost of the procedure at around 125 million euros.
The government wants to discuss the development of fuel prices again on August 4th and decide on possible further action. The tax cut is financed, among other things, by the system of variable consumption taxes, antitrust penalties and funds from the fund for structural policy measures. An increase in tobacco tax that had been discussed in the meantime to finance the diesel discount was not implemented.
As justification, Giorgetti referred to the significantly higher price increase for diesel compared to gasoline as a result of the international conflicts. At the same time, he expressed the hope that the recent drop in Brent oil prices would also lead to lower prices at gas stations in the coming days. The cabinet also extended support measures for road freight transport until July and a tax bonus for agriculture.
According to calculations by the consumer protection association Codacons, a full tank of diesel now costs around 8.50 euros less thanks to the tax cut. The average diesel price will still be around 2,015 euros per liter and therefore above the two euro mark. The association called the relief inadequate because it only affects diesel fuel and does not provide relief for drivers with gasoline vehicles.
With a view to rising energy prices, Giorgetti announced further government measures. If the burden on electricity and gas bills continues, the cabinet will take additional steps. He also held out the prospect of possible budgetary leeway for the autumn as part of a deviation from the EU fiscal rules. (sda/apa)